Jimmy John’s Makes Low-Wage Workers Sign ‘Oppressive’ Noncompete Agreements.
A Jimmy John’s employment agreement provided to The Huffington Post includes a “non-competition” clause that’s surprising in its breadth. Noncompete agreements are typically reserved for managers or employees who could clearly exploit a business’s inside information by jumping to a competitor. But at Jimmy John’s, the agreement apparently applies to low-wage sandwich makers and delivery drivers, too.
By signing the covenant, the worker agrees not to work at one of the sandwich chain’s competitors for a period of two years following employment at Jimmy John’s. But the company’s definition of a “competitor” goes far beyond the Subways and Potbellys of the world. It encompasses any business that’s near a Jimmy John’s location and that derives a mere 10 percent of its revenue from sandwiches.
From the agreement:
Employee covenants and agrees that, during his or her employment with the Employer and for a period of two (2) years after … he or she will not have any direct or indirect interest in or perform services for … any business which derives more than ten percent (10%) of its revenue from selling submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches and which is located with three (3) miles of either [the Jimmy John’s location in question] or any such other Jimmy John’s Sandwich Shop.
It isn’t clear what sort of trade secrets a low-wage sandwich artist might be privy to that would warrant such a contract. A Jimmy John’s spokeswoman said the company wouldn’t comment.
The noncompete agreement is now part of a proposed class-action lawsuit filed this summer against Jimmy John’s and one of its franchisees. As HuffPost reported in August, Jimmy John’s workers recently brought two lawsuits accusing the company of engaging in wage theft by forcing employees to work off the clock.